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Michigan Athletics agreement with Nike worth $169M to U-M

Michigan Athletics agreement with Nike worth $169M to U-M

The University of Michigan stands to receive $169 million in cash and apparel through its agreement making Nike the university's official provider of athletic footwear, apparel and equipment, according to the athletic department.

The partnership, which begins Aug. 1, 2016, and runs through 2027 with an option to extend it through 2031, will supply all 31 U‐M athletic programs, as well as provide officially licensed Michigan gear for fans.

"This decision, this partnership is about more than Michigan athletics; at the core, it is about our university community and it is about two great names reuniting for an opportunity that speaks to more than uniforms and apparel," Interim Athletic Director Jim Hackett said July 6 in announcing the agreement.

Hackett has said Michigan's agreement with Nike makes it the largest such deal in collegiate athletics.

Details released Wednesday specify that U-M would receive $12 million in upfront money, $76.8 million in annual cash over the life of the agreement — including the extension — and $80.2 million in apparel. Without the extension, U-M would receive $53.52 million in annual cash and $56.8 million in apparel.

U-M or its licensing agent — currently the Collegiate Licensing Co. — also would receive a royalty of 15 percent on net sales of licensed products. The agreement specifies aggregate royalties shall not be less than $18.35 million during the initial term, or $25.05 million if the extension is exercised.

Also, U‐M and Nike will collaborate on innovation initiatives in sports technology, design and best practices, including at least two community events per year that support and celebrate education in health and wellness initiatives, and provide three student summer internships at Nike headquarters.

The agreement includes use of the Jordan Brand "Jumpman" apparel for the men's and women's basketball programs.

Fans will be able to purchase officially licensed Michigan gear produced by Nike starting Aug. 1, 2016, and the M Den, as the official retailer of Michigan Athletics, will be among the first retailers to carry the apparel.

U-M has partnered with adidas since 2007 and will continue to work with the brand for the duration of that contract.